By Emmerson Njanjamangezi
Beleaguered bank, Tetrad Investment Bank (TIB) has slid into provisional judicial management after failing to secure an investor by the end of January 2015.
Tetrad is one of the seven financial institutions that were being monitored by the central bank under the Troubled and Insolvent Bank Policy.
The bank, which was courting a potential investor – Finance Bank of Zambia (FBZ) asked for the deferment on claims by creditors in July last year until the recapitalisation of the bank had been completed.
The High Court then allowed a person nominated by creditors to chair a meeting of creditors (Scheme of Arrangement) to get a deferment on claims until the recapitalisation.
In a letter to creditors in October last year, retired Judge George Smith said the bank had entered into negotiations with FBZ which wanted an equity stake in the bank.
This ensured the extension of the deadline to January 31 2015.
However, FBZ terminated negotiations to acquire a controlling equity stake in Tetrad in December last year putting the bank’s capitalisation plans in limbo.
In an interview yesterday, TIB chief executive Eugene Mlambo confirmed to The Zimbabwe Mail that formalities for provisional judicial management were already on course.
“Yes the three month Scheme of Arrangement has expired and we are officially in provisional judicial management. Formalities are on course, we will be sending out a notice very soon.”
Tetrad was reportedly solvent on a net asset position basis as it had assets worth $85 million, while liabilities amounted to $83m.
The bank was owed $14m in loans, $10m of it being insider and related-party loans, with $5,4m having been recovered so far in the form of properties.
The group, which established in 1995, comprises a merchant bank, TIB; an asset management Company, TFS Management Company; a micro finance company, Multiridge Finance; an insurance company, THI Insurance and a property development and management company, Tetrad Properties. The Zimbabwe Mail
